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The Kenya Revenue Authority (KRA) has forgone Sh9.1 billion in tax revenue between April and May 2026.
This follows the reduction of Value Added Tax (VAT) on fuel from 16 per cent to eight per cent as part of measures aimed at cushioning consumers from rising global fuel prices brought about by the US-Iran war in the Middle East.
Speaking before the Senate Standing Committee on Energy, KRA Commissioner for Customs and Border Control, Dr Lilian Nyawanda, said the tax relief intervention was implemented to mitigate the impact of global fuel price fluctuations on consumers and businesses.
Addressing concerns regarding the Premium Motor Spirit (PMS) consignment delivered by the vessel MT Paloma, which is currently under investigation, Nyawanda clarified that the consignment was re-shipped to other markets and did not enter the Kenyan market.
